Monochrome’s Spot Bitcoin ETF is launching in Australia for the first time

Monochrome Asset Management is set to make history as Australia's first bitcoin (BTC) exchange-traded fund (ETF) holds bitcoin directly. The Monochrome Bitcoin ETF (IBTC) will begin trading on the Cboe Australia exchange on Tuesday, June 4, 2024, at 10:00 AEST (00:00 UTC).

This is a major milestone for the Australian crypto market. It also provides a controlled and transparent way for investors to gain direct exposure to Bitcoin.

Direct Bitcoin Holdings: Monochrome's ETF debut

The introduction of IBTC will address a gap in the market. This product is the first and currently the only ETF in Australia that directly holds Bitcoin.

Australia has two exchange-traded products on Cboe Australia which provide exposure to exposure. However, they do not hold Bitcoin directly.

“Prior to IBTC, Australian investors were only able to invest in ETFs that held bitcoin indirectly or offshore Bitcoin products, neither of which benefited from investor protection rules under the directly held crypto asset AFS licensing system,” Monochrome said. press release.

In March, Monochrome eBTC announced that it would be the first to use the CME CF Bitcoin Reference Rate—Asia Pacific Alternative (BRAP) for benchmarking. BRRAP provides a reliable price reference for Bitcoin.

Read more: How to trade Bitcoin ETF: A step-by-step approach

It is designed to accurately reflect market prices, resist fraud, and be verified by market participants. In addition, Monochrome partners with crypto exchange Gemini as a Bitcoin custodian.

The company applied for a position in the Bitcoin ETF in April 2024. In Australia, companies require the approval of the regulator, the Australian Securities and Investments Commission (ASIC), and then the exchange listing product, in this case, Cboe Australia. Monochrome has received approval from ASIC for this product.

Monochrome's IBTC launch comes after ASX Ltd., Australia's main securities exchange, is said to be considering approving its first spot Bitcoin ETFs. According to sources close to the matter, these approvals could be implemented before the end of 2024.

BeenCrypto previously reported that BetaShares is actively working to launch its product on the ASX. A spokesperson for the company shared that they have already filed ticker tokens for their Bitcoin and Ethereum ETFs.

Similarly, DigitalX Ltd., another Australian company, announced its half-year results. At the same time, VanEyck, a veteran in the ETF sphere with US and European products, re-entered the Australian fray. The company submitted a renewed application earlier this year.

This Bitcoin ETF marks the second spot wave launched in Australia. Sydney-based Cosmos Asset Management He launched a Bitcoin ETF position in 2022, but later canceled the fund after it got too high. However, with the boom in Bitcoin ETFs in the US and Hong Kong, these products may remain in the Australian market.

Read more: Crypto ETN vs. Crypto ETF: What's the Difference?

With Australia's pensions estimated at $2.5 trillion, demand for cryptocurrencies is growing. The country's pension fund has allocated about 1 billion Australian dollars ($664 million) to digital assets. If Australian pension funds follow the lead of their US counterparts in holding Bitcoin ETFs, this will strengthen the base of these products in the Australian market.